Endeavour Mining Plc · TSX:EDV
Endeavour Mining — Endeavour Financial — Merger or Acquisition (February 2010)
13 slides from Endeavour Mining's merger presentation, Feb 3, 2010
Slide 1: Endeavour Gold Strategy: Endeavour acquires 38% of Crew Gold Corporation
ENDEAVOUR GOLD STRATEGY Endeavour acquires 38% of Crew Gold Corporation February 3 2010
Slide 2: Introduction
Introduction Neil Woodyer Chief Executive Officer Bill Koutsouras Executive VP & Chief Financial Officer Frank Giustra Fiore Financial Corporation (Exclusive advisor to Endeavour Financial) This presentation may contain forward‐looking information relating to the future performance of Endeavour Fina
Slide 3: Acquisition Summary
Acquisition Summary • Endeavour has invested US$92 million to acquire 38% ownership of Crew Gold Corporation • Crew has agreed to appoint 3 nominees of Endeavour to the 6‐seat Crew board • Endeavour to nominate: Neil Woodyer, Frank Giustra and Michael Beckett • Private share purchase from two Hedge
Slide 4: Compliments Endeavour's Etruscan Purchase
Compliments Endeavour’s Etruscan Purchase • In October 2009, Endeavour purchased a 55% interest in Etruscan Resources Inc, another West African gold producer with the Youga Mine in Burkina Faso and development and exploration projects in Burkina Faso, Côte d’Ivoire, Mali and Ghana. Crew’s LEFA Mine,
Slide 5: Endeavour's Gold Strategy
Endeavour’s Gold Strategy • Many investment opportunities in gold – our focus is on where we see the best value, which is the junior gold producers, and where we can deploy our skills • Our gold‐focused acquisition and consolidation strategy creates value from: o Using existing financial pressures t
Slide 6: Crew Gold's Recent Achievements
Crew Gold’s Recent Achievements • LEFA has had extensive plant upgrades over the last two years • Mine has operated “on target” since October 2009, when all four mills became operational • In December 2009, Crew completed a lengthy and difficult debt restructuring process to stabilize its Balance Sh
Slide 7: Guinea – On the Path to Political Stability
Guinea – On the Path to Political Stability • The Republic of Guinea has above‐average political risk as compared with its West African neighbours due to a history of corruption and poor governance • Most recently, Guinea has been moving in a positive direction: o Interim leader Konate has taken a c
Slide 8: Crew Valuation Indicators
Crew Valuation Indicators • Endeavour’s total investment is US$92 million to acquire our 38% equity stake in Crew Gold • Endeavour has performed extensive cashflow modeling on Crew, including risk‐adjusted DCF valuations • Our preferred valuation metric is P/NAV – and Endeavour’s analysis demonstrat
Slide 9: Crew Valuation Indicators - West African Peers per Ounce
Crew Valuation Indicators ‐ West African Peers per Ounce Peer Group analysis includes: Adamus Avocet Cluff IAMGold Red Back Resolute Semafo (Data sourced from Public Company Reports) Endeavour‐Etruscan Endeavour‐Etruscan $107/oz $53/oz Endeavour‐Crew Endeavour‐Crew $81/oz $52/oz • Endeavour’s entry
Slide 10: Summary
Summary • Endeavour has completed its second gold‐strategy investment with attractive valuation metrics • Endeavour has now invested US$150 million o US$58 million to own 55% of Etruscan Resources o US$92 million to own 38% of Crew Gold o Etruscan is forecasting 80,000 ozs of production for fiscal 2
Slide 11: APPENDIX 1. LEFA Resources
APPENDIX 1. LEFA Resources ENDEAVOUR FINANCIAL 11
Slide 12: APPENDIX 2. LEFA Reserves
APPENDIX 2. LEFA Reserves ENDEAVOUR FINANCIAL 12
Slide 13: APPENDIX 3. Etruscan Reserve & Resource Summary
APPENDIX 3. Etruscan Reserve & Resource Summary ENDEAVOUR FINANCIAL 13
Endeavour Financial — Merger or Acquisition (February 2010) on 6ix